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6/8/2012 8:07AM

The Cost of Saving Spain From a Banking Crisis

The cost of saving the Spanish banking sector will become apparent in the next three days as various institutions, including the IMF, report on the amount needed by the sector. Charles Forelle discusses what it means for the euro zone. Photo: Reuters

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... thus against the state's GOP leaders like State banking system from collapse ... also Forelle iShare with the sausages fact headlines insisting that this could be a ... teleconference of euro zone finance ministers at the weekend saw confirmed that it's very likely I mean things are coming to a head at this point indeed they are Mrs summon it has been away long time coming but is rather surprising to see how fast is actually here ... in the Spanish banks and is ... now in the ... tens of billions of euros on and ... did the Europeans in the Spaniards together then have to figure it would begin to ... get into the selection of ... the money for that exactly what is this Thanksgiving the ... fortress of Hollywood coming until Monday ... don't you think the Internet's was a surprise pre emptively ... well you know that they're they're couple of efforts going on to quantify exactly how much money the Spanish banks would need if that's the broad recapitalization sector ... I'm in the Spanish government's doing one of its own ... but didn't you notice the little to say precisely what could trigger that this or emergency weekend tops DVR ... I'm emergency ... um but you know it and it needs capital it needs capital and they're they're probably not going to wait around for the for somebody to put a report out of ... the situations or ... all is that how that Fitch downgraded Spanish debt to fetch living just a couple notches above junk um um last night ... this statement has been such that it doesn't mean that there are there is the ... key ... aam among investors who are concerned that mandates and conservative benchmarks um ... Lizzie and Spain Dow falling outs of the the higher ... rating grades means that there will be some for selling on the Spanish government debt ... it is frankly the last things that Spain needs right now for and purchasing a Spanish debt is effectively act ... as euro and if there's net selling of that that that means and thanks ... to God in even bigger burden supporting the sovereign debts of in the camp will ... essentially its ultimate extension the basis of that what what what we are right in the non ... banking sovereign intersection where the banks are trying to prop up the sovereign the sovereign is struggling to grow up ... ok the key thing is all about the sovereign is the one that actually goes and request formally update ... yesterday I mean it it seems difficult to imagine that Spain needs ... a big check to cash in the party if it needs ... forty or sixty or eighty and nineteen billion euros to do a recapitalization ... that is able to let the markets in ways that ... that means that the the only other solution ... is easy you're into